Frequently Asked Questions on the Growth Management Plan (Spring 2009)
	Presentation by Dr. Chuck Nicholson (Cornell University) on the Growth Management Plan (February 2009)
	Presentation by Rob Vandenheuvel on the Growth Management Plan (June 2009)
	Chart from Cornell University's Program on Dairy Markets and Policy: Growth Management Plan vs. The Status Quo (May 2009)

From MPC's Newsletter:
 

	Are Dr. Sexton's Arguments Credible? (September 11, 2009) It’s been a more than a month since I’ve written in this newsletter with any detail about the Dairy Price Stabilization Plan.  However, behind the scenes there has been much activity. The U.S. dairy industry is in the midst of a national debate.  Everyone – from producers to processors – recognizes that the growing milk price volatility that has become commonplace in our industry is extremely harmful.  However, when it comes to potential solutions, there is a battle of ideas and ideologies circulating.
	Cornell University Report Highlights the Continuing Threat of Milk Price Volatility (May 29, 2009) This week, Cornell University’s Program on Dairy Markets and Policy released the full report on their analysis of the Growth Management Plan.  Drs. Mark Stephenson and Chuck Nicholson included an expansive discussion of milk price volatility and how it has gotten dramatically worse with each boom/bust cycle.  The readers of this newsletter have heard it before, but it bears repeating: volatility is undoubtedly the single largest threat to this industry.
	A Big Week for the Growth Management Plan (May 15, 2009) This week brought some very big developments in our continuing efforts to build national support for a program like the Growth Management Plan (GMP). \
	Major Development for the Growth Management Plan (May 1, 2009) This week, the Holstein Association USA, which boasts 30,000 members nationwide, unveiled the “Dairy Price Stabilization Program.”  This program is virtually identical to the Growth Management Plan (GMP), which readers of this newsletter have been hearing about for quite some time (and for those that haven’t, I would encourage you to check out http://www.milkproducerscouncil.org/q&a_gmp.htm).  Like the GMP, the “Dairy Price Stabilization Program” would create a tangible financial incentive for dairies to manage the amount of milk they produce, thereby keeping a better balance of supply and demand.
	Cornell University Releases Updated Analysis of the Growth Management Plan (February 20, 2009) This week, the Cornell University Program on Dairy Markets and Policy (CPDMP) released an updated economic analysis of the Growth Management Plan (GMP).  The analysis was done by Drs. Mark Stephenson and Chuck Nicholson.
	Was This Wreck Predictable?  You Be The Judge (January 16, 2009) Almost two years ago, on April 27, 2007, Geoffrey Vanden Heuvel published an article in this newsletter entitled, “Staying Profitable – An Idea.” The article opened with the following introduction: “The dairy industry has gotten into a Boom and Bust cycle, which is getting increasingly violent with every passing turn. We had a downturn in the year 2000 and recovered in 2001. We had a downturn in 2003, that was, at least for me, twice as severe as the year 2000 downturn. We recovered in 2004/05 and went into another downturn in 2006, which we are just starting to recover from in 2007. The approximately 16 months of downturn in ‘06 and early ‘07 has been twice again as severe in terms of equity lost as was the 2003 downturn. Realistically we are probably looking at about 12 - 24 months of prosperity before we go back into the soup again. If nothing changes it is likely that the 2009 downturn will be horrific.” (Geoffrey Vanden Heuvel, 04/27/2007)
	More Comment on "The Magic of Pooling", By Geoffrey Vanden Heuvel, MPC Vice-President (November 28, 2008) Syp Vander Dussen, in his outstanding articles the last couple of weeks, explained the “magic of pooling” concept. He wrote, “If I produce one extra load of milk, which of course will go to powder (and possibly to the CCC), it will have a value of less than $10 to the pool, but I will receive a blend value of approximately $16.00 cwt for that load. But remember, the income to the pool bucket is about $10.00! That $6.00 loss is shared by all! Stated in again another way, it is in the best interest of every producer to produce as much milk as he can, always, because the lower value for that excess product is borne by everyone.” What Syp is pointing out is the fatal flaw in our milk pricing regulation: the price risk associated with increased production is not borne directly by the person making the production increase; it is transferred to the group at large. Basic economics tells us that supply and demand for any product is kept in balance by each individual participant’s calculation of risk verses reward. The “magic of pooling” transfers the risk to the entire group and the individual is left with the “reward.” Because of this reality, it is perfectly rational for each individual producer to grow production indiscriminately, while at the same time it is obviously irrational for dairy farmers collectively to produce more milk than can be profitably marketed.
	My View on Milk Production Increases, By Sybrand Vander Dussen, MPC President (November 14, 2008) The dairy industry in California continues in its addiction of over-production of milk. Dairy producers seem to have only one clear focus; produce more milk. As costs go up, as milk prices decline, we produce more milk. As coops battle to place milk and milk products, we produce more milk. With 3x milking, rBST, advancing genetics, gender-specific semen, we produce more milk. In a perfect world, where the milk we supply and the demand for those products remained somewhat in balance, this would be a strong sign of a vibrant and healthy industry. But the reality is, dairymen produce in an unrestrained fashion with no consideration of demand, leaving the industry in a perpetual state of overproduction which causes a myriad of problems, all of which should be unnecessary.